Tuesday, December 12, 2006

Quote Of The Day

This is one of my all time favorite quotes from Thomas Jefferson. I find it quite appropriate for today's monetary environment.

Everything predicted by the enemies of banks, in the beginning, is now coming to pass. We are to be ruined now by a deluge of bank paper, as we were formerly by the old Continental paper. It is cruel that such revolutions in private fortunes should be at the mercy of avaricious adventurers, who instead of employing their capital, if any they have, in manufactures commerce, and other useful pursuits, make it an instrument to burden all the interchanges of property with their swindling profits, profits which are the price of no useful industry of theirs. Prudent men must be on their guard in this game of Robin's alive, and take care that the spark does not extinguish in their hands. I am an enemy to all banks discounting bills or notes for anything but coin. But our whole country is so fascinated by this Jack o' lantern wealth, that they will not stop short of its total and fatal explosion." Thomas Jefferson

Our day of reckoning with our fiat currency system is fast approaching. The value of the dollar is down another 10% the past few months. The Fed has a huge problem on their hands right now. Do they keep raising interest rates to try to tame the inflation beast that they've created or do they cut rates like a lot of economists & people want...to continue the cheap money supply and thereby depressing even further the value of the greenback? They're in a no win situation right now.